The Financial Reporting Council has launched a probe into the accountancy giant’s audit of WH Smith’s financial statements

The UK’s accountancy watchdog has launched an investigation into PwC over its auditing of WH Smith in the wake of a damaging accounting scandal in the retailer’s US division.

The Financial Reporting Council (FRC) said it had launched a probe into PwC’s audit of WH Smith’s financial statements for the year to August 31.

It did not disclose the details of the probe.

Swindon-headquartered WH Smith admitted last year it overstated profits for its North American business by as much as £50m because of issues with its audit process.

Carl Cowling resigned as WH Smith’s chief executive in November last year after an independent report by Deloitte confirmed the accounting problems, finding a number of “shortcomings” in its US audit process.

WH Smith remains under investigation by the Financial Conduct Authority (FCA) over the accounting issue. The scandal led WH Smith to warn over profits for the year to the end of August 2025, which were also delayed over the affair.

A PwC spokesperson said: “We will be fully cooperating with the FRC’s investigation.

“The delivery of high-quality audits is fundamental for the firm and we are committed to maintaining high standards.”

WH Smith told investors in December that it had kickstarted a remediation plan to strengthen its governance and controls, ensure processes are aligned across the group and enact cultural change involving training and monitoring.

And earlier this year it hired the former boss of infrastructure giant Balfour Beatty as executive chairman, with an aim to help the group “return to stability” as it recovers from the debacle.

Leo Quinn started in the role on April 7, while interim chief executive Andrew Harrison will revert to his previous role as head of the firm’s UK division.

WH Smith is now focused solely on its 1,300 shops in global travel locations, including at airports and train stations, after selling its high street chain of about 480 shops to Hobbycraft owner Modella Capital in June last year.

As part of the deal, the WH Smith name has disappeared from British high streets and has been replaced by brand TGJones.

NEW YORK — The Russell 2000 index climbed 63.30 points, or 2.22%, to close at 2,918.73 on Tuesday, underscoring continued strength in small-cap stocks as investors bet on easier monetary policy, broadening economic growth and potential benefits from artificial intelligence adoption spilling over to smaller companies.

The small-cap benchmark outperformed larger indices for the session, reflecting renewed rotation into shares of smaller firms that are more sensitive to domestic economic conditions and interest rate changes. The advance extended a pattern of small-cap resilience seen throughout much of 2026, with the Russell 2000 building on earlier gains driven by expectations of Federal Reserve easing and fiscal support.

Smaller companies have historically thrived in environments of declining borrowing costs and accelerating economic activity. With inflation showing signs of moderation and the central bank signaling potential flexibility, investors appeared to price in improved financing conditions for businesses with higher debt loads or growth-oriented models typical of the Russell 2000 constituents.

The session’s breadth was notably positive, with a majority of components advancing amid gains in financials, industrials, consumer discretionary and technology-related small caps. Regional banks and real estate plays benefited from lower rate expectations, while select industrial and biotech names rode momentum from broader market optimism around innovation and infrastructure spending.

Analysts have pointed to several supportive factors for small caps in the current environment. Lower interest rates reduce the cost of capital for smaller firms, many of which rely more heavily on borrowing than their large-cap counterparts. Additionally, potential fiscal stimulus and domestic-focused policies could disproportionately benefit companies with U.S.-centric revenue streams, a common trait among Russell 2000 members.

The outperformance aligns with longer-term trends observed in 2026. Small caps have shown leadership at various points this year, rebounding from earlier volatility tied to geopolitical events and inflation concerns. Year-to-date gains have highlighted a shift away from mega-cap concentration, with investors seeking value and growth opportunities in the smaller end of the market.

Financial stocks within the index posted solid advances as bond yields eased and lending margins improved. Industrial names benefited from expectations around infrastructure and manufacturing activity, while healthcare and biotechnology components drew interest from clinical developments and merger activity. Technology-oriented small caps also participated, capturing spillover enthusiasm from the AI sector.

Market participants noted improving sentiment around corporate earnings for smaller companies. Many Russell 2000 firms have reported resilient results, with some sectors showing acceleration in revenue and margin expansion. This fundamental support, combined with attractive valuations relative to large caps, has encouraged capital flows into the space.

The Russell 2000’s composition of approximately 2,000 smaller U.S. companies makes it a key barometer for domestic economic health. Unlike the Dow or S&P 500, which are heavily weighted toward mega-cap multinationals, the small-cap index reflects conditions for businesses more exposed to U.S. consumer spending, regional economies and interest rate dynamics.

Looking forward, investors will monitor upcoming economic data, including inflation readings and employment figures, for further clues on the policy outlook. A softer inflation print could reinforce expectations for rate cuts, providing additional tailwinds for small caps. Corporate earnings season continues to offer company-specific catalysts across sectors.

Broader market context includes steady gains in major averages, with the S&P 500 and Nasdaq also advancing on technology strength. However, the Russell 2000’s outperformance highlights a healthy broadening of participation, often viewed as a positive signal for overall market durability.

Risks remain, including potential volatility from geopolitical developments, shifts in trade policy or unexpected economic slowdowns. Small caps tend to be more volatile than large caps, and any resurgence in inflation or delay in monetary easing could pressure the index. Nonetheless, current positioning suggests optimism prevails among investors.

The reconstitution of Russell indices, now on a semi-annual schedule in 2026, has also influenced flows and attention on smaller names. This structural change has increased liquidity events and rebalancing activity, contributing to periodic strength in the segment.

For portfolio managers and retail investors alike, the recent performance of the Russell 2000 serves as a reminder of the diversification benefits of including small caps. While large-cap technology has dominated headlines, smaller companies offer exposure to domestic growth themes and potentially higher long-term returns in favorable cycles.

As the trading day concluded, market breadth remained supportive with advancing stocks leading decliners. Volume was healthy, indicating broad-based conviction. Futures trading suggested cautious optimism heading into the next session, with focus on data releases and corporate updates.

The small-cap rally reflects a maturing bull market narrative where economic resilience and policy support create opportunities beyond mega-cap leaders. Whether this momentum sustains will depend on incoming fundamentals and the Federal Reserve’s communications in the weeks ahead.

Tuesday’s gain reinforces the Russell 2000’s role as a dynamic component of U.S. equity markets. With valuations still appearing reasonable compared to historical averages and large-cap peers in many cases, small caps continue to attract interest from investors seeking both growth and value in the current environment.

San Francisco voters appeared to reject a ballot measure that would have significantly increased taxes on some large companies with highly paid executives, delivering a win for business groups and technology leaders who argued the proposal could hinder the city’s economic recovery.

According to results posted by the San Francisco Department of Elections, Measure D was failing with 53.64% of voters opposed and 46.36% in favor. The measure required a simple majority to pass.

Measure D would have expanded San Francisco’s existing CEO pay ratio tax, which applies to certain large businesses when a top executive earns more than 100 times the median compensation of workers. The proposal would have changed the formula by comparing executive pay with a company’s entire workforce rather than only its San Francisco employees, while also increasing tax rates on affected businesses.

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Voters cast their ballots at a polling location inside City Hall during a primary election in San Francisco on Tuesday, June 2, 2026. (Jason Henry/Bloomberg via Getty Images / Getty Images)

City officials estimated the measure would generate between $250 million and $300 million in annual revenue. Supporters said the proposal would help address income inequality while providing additional funding for city services.

Opponents, including Mayor Daniel Lurie, argued the measure could drive employers away from San Francisco and make the city less competitive as officials work to revive downtown and attract new investment.

Voters cast their ballots at a polling location at City Hall during a primary election in San Francisco, California, on Tuesday, June 2, 2026. (David Paul Morris/Bloomberg via Getty Images / Getty Images)

The proposal also faced opposition from prominent technology executives, including Google co-founder Sergey Brin, who donated $500,000 to a committee campaigning against the measure.

CALIFORNIA TECH LEADERS CHALLENGE PROGRESSIVE POLICIES AS BILLIONAIRES, BUSINESSES FLEE: REPORT

The outcome adds to a series of election results that suggest San Francisco voters have shifted toward a more centrist approach on economic and governance issues. In recent years, voters recalled former District Attorney Chesa Boudin, removed three school board members and elected Lurie, a moderate Democrat who campaigned on public safety and economic recovery.

Election workers process mail-in ballots at the Department of Elections at City Hall during a primary election in San Francisco on Tuesday, June 2, 2026. (Jason Henry/Bloomberg via Getty Images / Getty Images)

The vote comes as San Francisco seeks to capitalize on an artificial intelligence-driven investment boom while continuing to confront concerns about its business climate and the departure of several high-profile companies and entrepreneurs in recent years.

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The defeat of Measure D is likely to be viewed by business advocates as a sign that voters remain focused on economic growth, job creation and efforts to strengthen the city’s competitiveness.

FOX Business’ Eric Revell contributed to this report. 

LOS ANGELES — Customers who used credit or debit cards at Trader Joe’s stores between March 5, 2019, and July 19, 2019, have until Tuesday to file claims for a portion of a $7.4 million class-action settlement over allegations that some receipts displayed too many digits of card numbers, potentially violating federal privacy protections.

The settlement resolves claims brought under the Fair and Accurate Credit Transactions Act, or FACTA, which requires merchants to truncate credit and debit card information on printed receipts to no more than the last five digits. Plaintiff Brian Keim alleged that certain Trader Joe’s locations printed the first six and last four digits, exposing customers to heightened risks of identity theft.

Trader Joe’s, which operates hundreds of stores nationwide and is known for its unique selection of private-label products without traditional sales or loyalty programs, has denied any wrongdoing. The company maintained that not all stores or transactions were affected and chose to settle to avoid the costs and uncertainties of prolonged litigation.

The proposed settlement received preliminary court approval earlier in 2026. A final approval hearing is scheduled for Aug. 10, 2026, in Los Angeles County Superior Court, Case No. 19STCV36790. If approved, the fund will cover valid claims, attorney fees, administrative costs and a $10,000 incentive payment to the named plaintiff.

Eligible individuals who submit timely, valid claims could receive an estimated $102.45 each, though the actual amount will be prorated based on the total number of approved claims. If claims are low, remaining funds may go to a cy pres recipient such as the Identity Theft Resource Center. No proof of purchase is required, but claimants must attest to qualifying transactions.

To file, customers can visit the official settlement website at tj-factasettlement.com, submit online through the designated portal, call the hotline at 888-444-7415, or mail a completed form to Keim v. Trader Joe’s Settlement Administrator, P.O. Box 301134, Los Angeles, CA 90030-1134. The deadline for claims, exclusions and objections is June 9, 2026.

The lawsuit originated from Keim’s experience at a Trader Joe’s in Palm Beach Gardens, Florida, in July 2019. He noticed his receipt contained more card digits than permitted under FACTA. The case was transferred to California courts given the company’s headquarters in Monrovia.

FACTA, enacted in 2003 as an amendment to the Fair Credit Reporting Act, aims to protect consumers by limiting printed card information on receipts. Violations can lead to statutory damages, even without proven actual harm, which often drives class-action filings in retail settings. Similar lawsuits have targeted other major chains over the years.

Trader Joe’s has emphasized its commitment to customer privacy and data security in public statements, noting no reported instances of identity theft linked to the receipts in question. The company continues normal operations while the settlement process unfolds.

For many consumers, the settlement represents a straightforward way to recover a modest sum for a technical compliance issue that occurred years ago. However, awareness remains key. Many affected shoppers may not have received direct notice and must proactively check eligibility.

Class counsel will seek up to approximately $2.47 million in attorney fees plus expenses. The structure reflects standard practices in consumer privacy class actions, where the bulk of the fund typically goes to claimants after deductions.

Retail experts note that such settlements serve as reminders for businesses to maintain strict point-of-sale system compliance. Modern payment technologies have largely reduced these risks through electronic receipts and better truncation software, but legacy issues from earlier years continue to surface in litigation.

Trader Joe’s customer base, known for its loyal following and enthusiasm for seasonal items and value pricing, spans diverse demographics. Shoppers in affected states during the narrow 2019 window — potentially millions of transactions — now have a limited opportunity to participate.

The case highlights ongoing tensions between convenience in retail transactions and data privacy. While printing full or partial card numbers was once common, regulatory scrutiny has intensified. Consumers are advised to review receipts carefully and opt for digital options when available to minimize exposure.

As the deadline approaches, settlement administrators expect a surge in filings. Those with Class ID numbers from mailed notices can use them for faster processing. Late claims will generally be rejected, emphasizing the importance of acting promptly.

Broader implications extend to consumer education. Privacy advocates encourage monitoring financial statements and using credit monitoring services, especially following potential data exposures. The settlement does not require proving individual harm, aligning with FACTA’s statutory framework.

For Trader Joe’s, the resolution allows focus on core business strengths: curated product selection, friendly staff and efficient stores. The company has grown significantly since 2019, expanding its footprint while maintaining its quirky brand identity.

Legal observers expect final approval barring significant objections. Once funded — typically 10 business days after approval — distribution to claimants could occur within months. Unclaimed portions support related causes rather than reverting to the defendant.

This settlement joins a long list of retail receipt cases that peaked in the 2010s and early 2020s. While individual payouts are modest, collective accountability reinforces compliance standards across the industry.

Consumers who shopped at Trader Joe’s during the specified period are encouraged to visit the official site immediately. With Tuesday’s deadline, time is limited for potential recovery. The process is designed to be accessible, requiring minimal documentation beyond basic transaction confirmation.

As digital payments rise, physical receipt issues have declined, but legacy cases like this remind both businesses and shoppers of the value of vigilance. Trader Joe’s settlement provides a practical outcome for affected customers while closing a chapter on alleged compliance gaps from several years ago.

SYDNEY — Barbeques Galore, a beloved Australian retailer specializing in barbecues, outdoor furniture and heating products since the 1970s, will shutter 62 company-owned stores and wind up operations in the coming weeks after a last-ditch rescue deal collapsed, putting hundreds of workers at risk of redundancy and marking the end for an iconic brand.

The company, which entered voluntary administration in February 2026 with around 89 stores and 500 employees, announced Tuesday that efforts to find a buyer or complete a recapitalization had failed. Receivers will now oversee the closure of company stores while exploring transitional arrangements for 27 franchise outlets.

Administrators and receivers from Grant Thornton and Ankura had pursued a sale process and a conditional recapitalization proposal from secured creditor Gordon Brothers. However, negotiations with landlords, suppliers and other parties could not reach acceptable commercial terms, leading to the decision to wind up the business.

“This is a tragic final chapter for an iconic Australian retail brand,” said Roger Montgomery of The Montgomery Fund. “If you can’t sell barbecues to Aussies, who can you sell to?”

Founded in the 1970s by Max Mason, Barbeques Galore grew into a household name, offering a wide range of outdoor living products. At the time of administration in mid-February, the group operated 68 company-owned stores and 27 franchised locations. Five underperforming stores had already closed during the process.

The collapse reflects broader pressures on Australian retail, including high inflation, cost-of-living challenges, shifting consumer preferences toward apartments with smaller outdoor spaces, and a post-budget slowdown in spending. Liquidity issues persisted despite earlier ownership changes, including a 2025 transition involving private equity and Gordon Brothers.

Staff will continue to be employed during the receivership process or receive redundancy as stores wind down. Receivers stated that all employees will be paid their full accrued redundancies and termination payments in the ordinary course of separation. The company employed approximately 500 people at the start of administration.

Customers holding gift cards can redeem them until June 30 under specific conditions. For every $1 of gift card value used, shoppers must spend an additional $2 of their own money. Unredeemed cards after the deadline will be treated as unsecured creditors. The arrangement, first announced in February, aims to facilitate orderly wind-down while providing some value to holders.

The failed Gordon Brothers proposal had offered a potential path to keep the business operating as a going concern via a deed of company arrangement. It was viewed as the best outcome for stakeholders, including employees, landlords and suppliers, but ultimately could not proceed.

Receivers noted that a formal sale process attracted interest but yielded no offers capable of acceptance or implementation by late May. The combination of challenging economic conditions and difficulties securing ongoing trading terms sealed the fate of the company-owned operations.

Franchise stores face uncertainty, with receivers working through transitional arrangements. The future of those outlets and associated employees remains unclear as the broader group winds up.

The news comes amid a tough retail environment in Australia. Analysts point to structural shifts, including reduced demand for large outdoor items as more people live in high-density housing, alongside macroeconomic headwinds like rising costs and cautious consumer spending.

Barbeques Galore had attempted to adapt through ownership changes and operational reviews, but persistent liquidity challenges proved insurmountable. CEO David White, who stepped into the role late last year, had expressed optimism during earlier restructuring talks about building on the brand’s market position.

For suppliers and landlords, the wind-up will involve asset sales and stock liquidation. The amount creditors ultimately recover will depend on the outcomes of these processes. Receivers remain in control and will continue exploring any remaining sale opportunities for assets.

The case highlights vulnerabilities in specialty retail. Barbeques Galore’s focus on seasonal and big-ticket items made it particularly susceptible to economic cycles. Similar pressures have affected other Australian chains in recent years, prompting calls for greater support for small and medium businesses.

Customers are encouraged to use remaining gift cards promptly. In-store and online operations for company stores will continue during the sell-through period before closures accelerate. The exact timeline for individual store shutdowns will be communicated as the process unfolds.

Industry observers describe the outcome as disappointing for a brand with deep roots in Australian culture. Barbeques symbolize backyard gatherings and outdoor lifestyle, elements long central to national identity. The closure of dozens of stores will leave gaps in communities where the retailer served as a go-to destination.

As the wind-up proceeds, attention turns to the human impact. Hundreds of employees, many with long tenures, face job losses at a time when the labor market shows signs of softening in retail sectors. Support services for affected workers are expected through standard redundancy processes and government programs.

The failure also underscores challenges in retail restructuring. Even with creditor backing for a recapitalization, securing buy-in from multiple stakeholders proved difficult amid tight margins and uncertain trading conditions.

Looking ahead, the 27 franchise stores may seek independent paths or potential buyers. Receivers will provide updates as developments occur. For the broader retail sector, the episode serves as a cautionary tale about adapting to evolving consumer behaviors and economic realities.

Barbeques Galore’s story began decades ago with a focus on quality barbecues and outdoor essentials. While the company-owned operations conclude, the brand’s legacy in Australian shopping may endure through remaining franchises or potential asset acquisitions. For now, the immediate focus remains on an orderly closure that honors employee entitlements and customer commitments where possible.